I think it is just the velocity of the celestial object, relative to an Earth observer. The moon's translational velocity would be how fast it is moving around the Earth.
Found this: Translational Motion
If the spectral lines in a star's spectrum are uniformly redshifted this would indicate relative recessional motion between the observer and the star. The amount of redshift would depend on the recession velocity. A complicating factor is the fact that the motion may not be directly away from us. In this case the Doppler shift of lines would depend on the component of velocity away from us, that is the star's radial velocity.
A star moving towards us would, of course, exhibit a blueshift in its spectral lines.